diff --git a/packages/client/public/models/block00.glb b/packages/client/public/models/block00.glb
deleted file mode 100644
index ffd36d3..0000000
Binary files a/packages/client/public/models/block00.glb and /dev/null differ
diff --git a/packages/client/public/models/block01.glb b/packages/client/public/models/block01.glb
deleted file mode 100644
index 9b5bdc3..0000000
Binary files a/packages/client/public/models/block01.glb and /dev/null differ
diff --git a/packages/client/public/models/facilities.glb b/packages/client/public/models/facilities.glb
new file mode 100644
index 0000000..f982b10
Binary files /dev/null and b/packages/client/public/models/facilities.glb differ
diff --git a/packages/client/src/game/data/entities.ts b/packages/client/src/game/data/entities.ts
index 7d09f60..ef7c2ae 100644
--- a/packages/client/src/game/data/entities.ts
+++ b/packages/client/src/game/data/entities.ts
@@ -9,8 +9,17 @@ export type EntityDataType = {
   costs: [ResourceType, number][];
   produces: [ResourceType, number, number][];
   variants: ModelDataType[];
+  tags: EntityTag[];
 };
 
+export const entityTags = [
+  "groundLevel",
+  "producesPower",
+  "producesGravity",
+  "producesPopulation",
+] as const;
+export type EntityTag = (typeof entityTags)[number];
+
 const EntityData = {
   facilities: {
     gravityhill: {
@@ -21,6 +30,7 @@ const EntityData = {
       costs: [["lapu", 500]],
       produces: [["gravity", 25, 1]],
       variants: [ModelData.well00],
+      tags: ["groundLevel"],
     },
     dynamo: {
       name: "Whirly Dynamo",
@@ -31,6 +41,7 @@ const EntityData = {
       costs: [["lapu", 200]],
       produces: [["power", 25, 1]],
       variants: [ModelData.engine00],
+      tags: [],
     },
     residence: {
       name: "Residence",
@@ -41,6 +52,7 @@ const EntityData = {
       costs: [["lapu", 100]],
       produces: [["population", 5, 1]],
       variants: [ModelData.block00, ModelData.block01, ModelData.block02],
+      tags: [],
     },
   } as { [key: string]: EntityDataType },
 } as const;
diff --git a/packages/client/src/game/data/models.ts b/packages/client/src/game/data/models.ts
index 9a3d72b..6fa64e9 100644
--- a/packages/client/src/game/data/models.ts
+++ b/packages/client/src/game/data/models.ts
@@ -5,6 +5,9 @@ export type ModelDataType = {
   colors: string[];
 };
 
+export const importModels = ["/models/plants.glb", "/models/facilities.glb"];
+export const importTextures = ["/textures/box01.webp"];
+
 const ModelData: { [key: string]: ModelDataType } = {
   block00: {
     name: "GenericBlock00",
diff --git a/packages/client/src/game/entities/facility.tsx b/packages/client/src/game/entities/facility.tsx
index 237e79c..84accca 100644
--- a/packages/client/src/game/entities/facility.tsx
+++ b/packages/client/src/game/entities/facility.tsx
@@ -3,16 +3,13 @@ import { useStore } from "../store";
 import { AdditiveBlending, DoubleSide, Mesh, Vector3 } from "three";
 import { animated } from "@react-spring/three";
 import { MouseInputEvent, useInput } from "../input/useInput";
-import {
-  buildFacility,
-  canBuildAtPosition,
-} from "../systems/constructionSystem";
+import { buildFacility } from "../systems/constructionSystem";
 import { palette } from "../utils/palette";
 import { faceDirections } from "@/lib/utils";
 import { IFacility } from "../types/entities";
 
 const Renderer = (props: IFacility) => {
-  const { colorPrimary, colorSecondary, scale, variant, rotation } = props;
+  const { colorPrimary, colorSecondary, variant, rotation } = props;
   const {
     assets: { meshes },
   } = useStore();
@@ -29,7 +26,7 @@ const Renderer = (props: IFacility) => {
   return (
     <group
       dispose={null}
-      scale={scale.multiplyScalar(0.7)}
+      scale={new Vector3(1, 1, 1)}
       position={[0, 0, 0]}
       rotation={[0, rotation.y, 0]}
     >
@@ -81,26 +78,16 @@ const Facility = (props: IFacility) => {
   const { onMouseMove } = useInput((event: MouseInputEvent) => {
     if (faceIndex === undefined) return;
     const direction = event.position.clone().add(faceDirections[faceIndex!]);
-    const canBuild = canBuildAtPosition(direction);
-    if (canBuild) {
-      cursor.setCursor({
-        position: direction,
-        cursorState: "valid",
-        direction: faceDirections[faceIndex!].clone().negate(),
-      });
-    } else {
-      cursor.setCursor({ cursorState: "hidden" });
-    }
+    cursor.setCursor({
+      position: direction,
+      direction: faceDirections[faceIndex!].clone().negate(),
+    });
   }, entityRef);
 
-  const { onMouseDown, onMouseClick } = useInput((event: MouseInputEvent) => {
+  const { onMouseDown, onMouseClick } = useInput(() => {
     if (faceIndex === undefined) return;
-    const direction = event.position.clone().add(faceDirections[faceIndex!]);
-    const canBuild = canBuildAtPosition(direction);
-    if (canBuild) {
-      buildFacility(direction);
-      setFaceIndex(undefined);
-    }
+    buildFacility(cursor.position);
+    setFaceIndex(undefined);
   }, entityRef);
 
   return (
@@ -141,7 +128,7 @@ const Facility = (props: IFacility) => {
                 ? palette.cursor
                 : "black"
             }
-            visible={faceIndex !== undefined && faceIndex === index}
+            visible={false}
             transparent={true}
             // TODO: Remove the face highlighting completely, or use alternative face highlighting like in Townscraper
             opacity={0}
diff --git a/packages/client/src/game/entities/ground.tsx b/packages/client/src/game/entities/ground.tsx
index 541c244..c4843c1 100644
--- a/packages/client/src/game/entities/ground.tsx
+++ b/packages/client/src/game/entities/ground.tsx
@@ -3,10 +3,7 @@ import { Grid, GridProps } from "@react-three/drei";
 
 import { useInput } from "../input/useInput";
 import { getState, useStore } from "../store";
-import {
-  buildFacility,
-  canBuildAtPosition,
-} from "../systems/constructionSystem";
+import { buildFacility } from "../systems/constructionSystem";
 import { Directions } from "@/lib/utils";
 
 const gridSize = 1000;
@@ -38,10 +35,8 @@ function Ground() {
     const {
       input: { cursor },
     } = getState();
-    const canBuild = canBuildAtPosition(event.position);
     cursor.setCursor({
       position: event.position,
-      cursorState: canBuild ? "valid" : "hidden",
       direction: Directions.DOWN(),
     });
   }, gridRef);
diff --git a/packages/client/src/game/input/cursor.tsx b/packages/client/src/game/input/cursor.tsx
index 843bfad..e9de769 100644
--- a/packages/client/src/game/input/cursor.tsx
+++ b/packages/client/src/game/input/cursor.tsx
@@ -1,16 +1,18 @@
 import { useEffect, useRef, useState } from "react";
 import { Sparkles } from "@react-three/drei";
-import { AdditiveBlending, DoubleSide } from "three";
+import { AdditiveBlending, DoubleSide, Vector3 } from "three";
 
 import { useStore } from "../store";
 import { palette } from "../utils/palette";
 import { faceDirections } from "@/lib/utils";
+import { canBuildAtPosition } from "../systems/constructionSystem";
 
 function Cursor() {
   const cursorRef = useRef<THREE.Mesh>(null);
   const {
     input: {
-      cursor: { position, cursorState, direction },
+      cursor: { position, cursorState, direction, setCursor },
+      building,
     },
     assets: { textures },
   } = useStore();
@@ -23,16 +25,34 @@ function Cursor() {
     }
   }, [direction]);
 
+  useEffect(() => {
+    if (building) {
+      if (!canBuildAtPosition(position)) {
+        setCursor({ cursorState: "invalid" });
+      } else {
+        setCursor({ cursorState: "valid" });
+      }
+    } else {
+      setCursor({ cursorState: "hidden" });
+    }
+  }, [cursorState, building, position, setCursor]);
+
   return (
-    <group position={position.toArray()} visible={cursorState !== "hidden"}>
+    <group
+      position={position.toArray()}
+      visible={cursorState !== "hidden"}
+      scale={new Vector3(0.95, 0.95, 0.95)}
+    >
       <mesh userData={{ type: "cursor" }} ref={cursorRef}>
-        <boxGeometry args={[0.96, 0.96]} />
+        <boxGeometry args={[1, 1]} />
         {/* Face mapping for direction */}
         {[...Array(6)].map((_, index) => (
           <meshLambertMaterial
             attach={`material-${index}`}
             key={index}
-            color={palette.cursor}
+            color={
+              cursorState === "valid" ? palette.cursor : palette.cursorInvalid
+            }
             visible={faceIndex !== undefined && faceIndex === index}
             transparent={true}
             opacity={0.3}
@@ -48,11 +68,13 @@ function Cursor() {
         />
       </mesh>
       {/* 🐁 main cursor block */}
-      <mesh>
-        <boxGeometry args={[0.99, 0.99, 0.99]} />
+      <mesh visible={cursorState === "valid"}>
+        <boxGeometry args={[0.95, 0.95, 0.95]} />
         <meshStandardMaterial
           map={textures["box01"]}
-          color={"#76EAE4"}
+          color={
+            cursorState === "valid" ? palette.cursor : palette.cursorInvalid
+          }
           transparent
           attach="material"
           opacity={0.1}
diff --git a/packages/client/src/game/systems/constructionSystem.tsx b/packages/client/src/game/systems/constructionSystem.tsx
index 2ddde34..d8cd178 100644
--- a/packages/client/src/game/systems/constructionSystem.tsx
+++ b/packages/client/src/game/systems/constructionSystem.tsx
@@ -6,11 +6,19 @@ import { palette } from "../utils/palette";
 import { IFacility } from "../types/entities";
 import prand from "pure-rand";
 
+// TODO: Extract build conditions, can't build 1 tile below gravity well, only gravity well can build at y==1, etc
 const canBuildAtPosition = (position: Vector3) => {
+  const {
+    input: { building },
+  } = getState();
   if (position.y < 0) return false;
   const { getEntityByPosition } = getState().world;
   const entity = getEntityByPosition(position);
-  return entity ? false : true;
+  if (entity) return false;
+  if (building && !building.tags.includes("groundLevel") && position.y < 1) {
+    return false;
+  }
+  return true;
 };
 
 const getEntityInDirection = (position: Vector3, direction: Vector3) => {
@@ -34,6 +42,7 @@ const buildFacility = (position: Vector3) => {
 
   if (!canBuildAtPosition(position)) {
     console.error("Cannot build here", position);
+    cursor.setCursor({ cursorState: "invalid" });
     return;
   }
 
@@ -43,7 +52,7 @@ const buildFacility = (position: Vector3) => {
 
   const newFacility = {
     position: position,
-    scale: new Vector3(Math.random() * 0.1 + 0.9, 1, Math.random() * 0.1 + 0.9),
+    scale: new Vector3(1, 1, 1),
     colorPrimary: getRandom(palette.buildingPrimary),
     colorSecondary: getRandom(palette.buildingSecondary),
     entityRef: createRef<THREE.Mesh>(),
@@ -62,7 +71,6 @@ const buildFacility = (position: Vector3) => {
 
   addEntity(newFacility);
   // Move Input logic away from here
-  cursor.setCursor({ cursorState: "hidden" });
   setInput({ building: undefined });
   console.log(newFacility);
 };
diff --git a/packages/client/src/game/utils/importer.tsx b/packages/client/src/game/utils/importer.tsx
index 03f0379..846af62 100644
--- a/packages/client/src/game/utils/importer.tsx
+++ b/packages/client/src/game/utils/importer.tsx
@@ -3,9 +3,7 @@ import { useGLTF, useTexture } from "@react-three/drei";
 import { Material, Mesh, Texture } from "three";
 import type { GLTF } from "three-stdlib";
 import { useStore } from "../store";
-
-const models = ["/models/plants.glb", "/models/block01.glb"];
-const textures = ["/textures/box01.webp"];
+import { importModels, importTextures } from "../data/models";
 
 export interface Assets {
   meshes: Record<string, Mesh>;
@@ -51,12 +49,12 @@ function TextureLoader({ path }: { path: string }) {
     useTexture.preload(path);
   }, [path]);
 
-  // Loading and storing the model
+  // Loading and storing the texture
   const texture = useTexture(path) as Texture;
 
   useEffect(() => {
     if (texture) {
-      textures.forEach((node) => {
+      importTextures.forEach((node) => {
         try {
           addTexture(node.replace("/textures/", "").split(".")[0], texture);
         } catch (error) {
@@ -72,10 +70,10 @@ function TextureLoader({ path }: { path: string }) {
 function Importer() {
   return (
     <>
-      {models.map((model) => (
+      {importModels.map((model) => (
         <ModelLoader key={model} path={model} />
       ))}
-      {textures.map((texture) => (
+      {importTextures.map((texture) => (
         <TextureLoader key={texture} path={texture} />
       ))}
     </>
diff --git a/packages/client/src/game/utils/palette.ts b/packages/client/src/game/utils/palette.ts
index 77d7503..842d06b 100644
--- a/packages/client/src/game/utils/palette.ts
+++ b/packages/client/src/game/utils/palette.ts
@@ -4,6 +4,7 @@ const grassColors = ["#9BD48A", "#8FCD5F", "#69CD1E"];
 
 const palette = {
   cursor: "#76EAE4",
+  cursorInvalid: "#ff0000",
   buildingPrimary: buildingPrimary,
   buildingSecondary: buildingSecondary,
   grassColors: grassColors,
diff --git a/packages/contracts/worlds.json b/packages/contracts/worlds.json
index bd48105..ab87925 100644
--- a/packages/contracts/worlds.json
+++ b/packages/contracts/worlds.json
@@ -1,5 +1,5 @@
 {
   "31337": {
-    "address": "0x5FbDB2315678afecb367f032d93F642f64180aa3"
+    "address": "0xB7f8BC63BbcaD18155201308C8f3540b07f84F5e"
   }
 }
\ No newline at end of file